The marijuana industry has been one of the most intriguing markets to watch and participate in throughout the year. With so many legislative changes on the way, it seems as though we are only in the beginning stages of massive growth in the market.

This year we saw the first G7 nation legalize marijuana for recreational use which was a major paradigm shift for the industry. Many states in the U.S. also were able to put in new legislation for cannabis laws which has created a new sentiment across the nation. With so much in the works, what are the biggest variables for the next year in cannabis?

One of the biggest issues in the whole of cannabis has been that of banking. With no federal laws in the U.S. allowing the use of cannabis, banks have been unable to touch the plants or participate in business operations. This has left the industry dealing solely in cash which creates a difficult and not to mention dangerous situation for all. Looking at Canada, before they were able to pass the aforementioned legislation, banks did not want anything to do with the market.

Banks have been living in constant fear that if they enter the marijuana market, they may face legal troubles. Only a few banks have since been able to enter cannabis, but they have not done so in as large of a way as they would like. One of the biggest issues with this has been that cannabis companies have not been able to grow nearly as quickly as they should.

Without access to capital, many cannabis companies have had to use various methods to raise capital such as bought-deal offerings. This has only left cannabis stocks with diluted prices which has made investors quite unhappy. Despite this, we are still seeing more banks work on getting into the cannabis industry which has been a big step in the right direction.

In the U.S. the market has seen some difficulties including legislation from the federal level. For many decades now, cannabis has been considered to be a Schedule I narcotic which places it on the same level as heroin and other dangerous drugs. Of course, most of this sentiment has been disproven by fact and scientific studies, but the government has been unwilling to reschedule the drug. This has resulted in it being extremely difficult to research cannabis in the U.S. as well as start a business within the industry.

This coming year, hopefully, we can see the federal government work on easing their hand in the cannabis space. This is what many have been waiting for, for some time now but with no resolve. If the federal government is able to decriminalize cannabis, it would make the entire industry run smoothly. This, of course, seems like it could be on the horizon but with the current state of the government, it is really anyone’s guess.

Marijuana is one of the most exciting industries of the modern day. With so much still in the world, much of the potential of the market is still lying in wait. The next few years will remain extremely important for the world of cannabis.